United Services facing big financial hit

Despite a steady increase in the number of clients treated, a local behavior health group can expect their share of state funding to drop significantly under Gov. Dannel Malloy’s budget proposal, officials said.

Despite a steady increase in the number of clients treated, a local behavior health group can expect their share of state funding to drop significantly under Gov. Dannel Malloy’s budget proposal, officials said.

And worse, the proposed cuts are being made to less costly outpatient services that could result in many patients being referred to more costly inpatient programs — further exasperating the state’s deficit problems.

“Since 2007, the number of patients with mental health issues we’ve treated has increased by 214 percent, without receiving additional funding from the state,” said John Goodman, spokesman for United Services Inc., at a Bulletin editorial board meeting on Monday. “And this is at a time when people are dealing with higher levels of stress due to the economy. We’re seeing patients with anxiety, with psychosis, caregiver stress and people trying to figure out how they’re going to put their next meal on the table.”

Serves 6,000 people

The nonprofit United Services group specializes in treating adults and children with behavioral and substance abuse issues throughout Windham County. Between its Dayville and Windham offices, approximately 6,000 patients are seen by the group annually, said Dianne Manning, president and chief operating officer.

“But the state funding for treating those adults is set to decrease by 82 percent during the next two years, while we’re also looking at an 87 percent cut in our substance abuse funding,” Manning said.

During the next two years, Malloy’s two-year $43.8 billion budget calls for phasing out the state’s Medicaid reimbursement rate to hospitals for care of uninsured patients. The change is related to the introduction of the federal Affordable Care Act, scheduled to begin Jan. 1 and to be completely implemented by 2016.

Under the new health care reform law, federal officials said those patients affected by the most recent changes would be insured – meaning reimbursement would not be needed. But, Manning said, only roughly 10 percent of her group’s patients are uninsured.

“So that doesn’t make up for the funding we’re losing,” Manning said. “The other piece is that even if those patients are covered, they’re still looking at co-payments for treatment.”

The budget cuts come at a time when group leaders are pushing to expand their Willimantic office on Mansfield Avenue, a plan they said will address the “vital” space need.

“We need this expansion,” Goodman said. “But there’s no word yet on the state bonding necessary for the work to start.”

Goodman said the proposed $9 million project would allow the group to reconfigure the 60-year-old building by creating group therapy spaces and providing a more secure environment.

“It’s shovel-ready, but we’re dependent on the state,” Manning said. “Creating those group spaces would allow us to treat a greater number of patients for less money.”